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118 Chapter 7: Fairness and Ethics in Decision Making

explain the results. However, they also argue that a simple notion of equality does not

explain the data, since in most cases the proposer asks for more than 50 percent of the

resources in the first stage. Rather, parties realize that the other side may very well

refuse offers perceived as unfair despite the economic rationality of accepting them.

Fair Dictators?

Ochs and Roth had participants play either an ultimatum game like the one just described

or a ‘‘dictator’’ game in which the proposer could simply decide how the

resources would be split without the responder’s acceptance. They found that while

many proposers chose a 50–50 split in the ultimatum game, none proposed a 100–0

split. By contrast, under the dictator format, 36 percent of all propsers took 100 percent.

When acceptance was required, proposals became more equal. However, in the dictator

game, when acceptance by the other party was not required, 64 percent still chose to

give the other party some portion of the resources. These results demonstrate that both

a desire to be fair and the realization that being unfair can generate future costs led to

choices that deviated from rational models in systematic and predictable directions.

The Persistent Desire for Fairness

Many people have the intuition that it is easy to sacrifice a few dollars to punish an

unfair allocation in the ultimatum game, but that people would behave more rationally

if the stakes were sufficiently high. The evidence, however, contradicts this intuition. A

number of studies have varied the stakes in the ultimatum game and found no appreciable

effect on behavior—even when the total pie was equal to several months’ wages.

An even split remains the most common offer by proposers, and responders routinely

reject any offer less than 20 percent (Cameron, 1999; Hoffman, McCabe, & Smith,

1996; Straub & Murnighan, 1995).

Neuroimaging techniques pinpoint the role of emotional reactions in the ultimatum

game. Functional magnetic resonance imaging technology (fMRI) allows scientists

to see how blood flows to different parts of the brain in real time. Decision scientists

who are interested in the mechanisms behind people’s observed choices have used

fMRIs to determine which part of the brain is activated under different conditions.

Sanfey, Rilling, Aronson, Nystrom, and Cohen (2003) scanned players’ brains as they

received ultimatum-game offers either from another person or from a computer. The

researchers found different patterns in brain activation for unfair offers and for fair

offers, and the differences were greater when these offers came from another person

than when they came from a computer. A region associated with negative emotional

states (the anterior insula) was stimulated when players considered unfair offers, as was

another region that the authors hypothesized was connected to the cognitive demands

of the task (the dorsolateral prefrontal cortex), namely, the desire to make as much money

as possible. The greater emotional response for unfair offers provides concrete evidence

that emotional processes are involved in this type of decision making.

There is surprising cross-cultural consistency in the way people play the ultimatum

game. Henrich, Boyd, Bowles, Camerer, Fehr, Gintis, et al. (2001) conducted studies

that included the game in fifteen global societies. This research found little support for

the classic economic view of self-interest; fairness was found to be an important factor

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